Equity Incentive Plans

6 Months Ended

Jun. 30, 2026

Equity Incentive Plans

Equity Incentive Plans

10. Equity Incentive Plans

Stock Award Plans

The Company maintains a 2016 Equity Incentive Plan (the “2016 Plan”), which provides for the issuance of incentive share awards in the form of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance-based stock awards. As of June 30, 2026, there were 3,963,929 shares available for issuance under the 2016 Plan.

Stock option transactions during the six months ended June 30, 2026 are presented below:

	Options Outstanding
				Weighted
				Average
		Weighted		Remaining
		Average		Contractual	Aggregate
		Exercise		Term	Intrinsic
	Shares	Price		(Years)	Value (in thousands)
Outstanding at December 31, 2025	4,803,921	$	3.22	7.4	$	15,045
Granted	1,858,076	$	11.65		$	—
Exercised	(364,725)	$	3.33		$	2,041
Forfeited/Cancelled/Expired	(23,801)	$	18.93		$	89
Outstanding at June 30, 2026	6,273,471	$	5.65	7.9	$	14,800
Vested and expected to vest at June 30, 2026	6,273,471	$	5.65	7.9	$	14,800
Exercisable at June 30, 2026	2,869,012	$	3.62	6.5	$	8,411

The aggregate intrinsic value of options at June 30, 2026 is based on the Company’s closing stock price on that date of $6.48 per share.

Restricted stock unit award transactions during the six months ended June 30, 2026 are presented below:

		Weighted Avg
		Grant Date
	Shares	Fair Value
Outstanding at December 31, 2025	152,500	$	2.73
Granted	—	$	—
Vested	(17,500)	$	3.38
Cancelled	—	$	—
Outstanding at June 30, 2026	135,000	$	2.65

Stock-based Compensation

The Company estimates the fair value of stock options with performance and service conditions using the Black-Scholes valuation model (“Black-Scholes”). Compensation expense related to stock options granted is measured at the grant date based on the estimated fair value of the award and is recognized on the accelerated attribution method over the requisite service period.

The assumptions used in the Black-Scholes model during the three and six months ended June 30, 2026 and 2025 are presented below. There were no stock options granted during the three months ended June 30, 2025.

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Risk-free interest rate	4.01%	—	3.76%-4.01%	4.27%-4.30%
Expected volatility	98.36%	—	98.36%-100.00%	99.64%-101.43%
Expected term (in years)	6.00	—	5.50-7.00	5.75-6.25
Expected dividend yield	0%	—	0%	0%

The table below summarizes the total stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the periods presented (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Research and development	$	1,456	$	167	$	1,916	$	487
General and administrative		1,935		408		2,550		869
Total stock-based compensation expense	$	3,391	$	575	$	4,466	$	1,356

As of June 30, 2026, there was $15.6 million of total unrecognized compensation expense related to unvested stock options and restricted stock units, which the Company expects to recognize over the weighted average remaining period of approximately 2.2 years.